Atlantic City Casino Profits Decline in 2022 as Industry Struggles Post-Pandemic

Atlantic City casinos generated substantially to a greater extent revenue in 2022 than the 9 properties did inward 2021, but their underside lines collectively declined nearly 5%.

The New island of Jersey Division of Gaming Enforcement (DGE) issued meshwork revenue and 144 operating reports for the ix Atlantic City casinos on Tuesday. The data presented concerning numbers, as only if II of the niner casinos reported higher profits compared with 2021.

Full-year mesh revenue was to a greater extent than $3.3 billion, a 9.3% year-over-year jump, but gross operating profits dropped 4.6% to $731.2 million. The benefit wane represents an earnings red of nearly $35.6 million.

Borgata, the richest dimension in Atlantic City, saw its operating profit go down more than 19% to $140.3 million.

Hard Rock and Ocean, the newest casinos inwards townspeople that both opened in June 2018, were the 2 winners. The Boardwalk resorts respectively saw profits growth by almost 20% and 6% to $128 trillion and $96.2 million.

Expenses Outpacing Revenue

The monthly revenue gaming revenue (GGR) reports for Atlantic Ocean City read fountainhead endure year, as the ix casinos continued to generate higher income on their gaming floors and online channels.

2022 GGR from brick-and-mortar casinos, iGaming, and retail and nomadic sports betting totaled to a greater extent than $5.2 billion, an all-time record heights that easy eclipsed the land gaming industry’s previous topper of $4.8 one thousand million exercise set inward 2007.

The IX casinos hold been stressing that the receipts revenue reports are misleading as they relate to the boilers suit health of the brick-and-mortar resorts. The industry argues that a great deal of the 144 revenue generated online through and through iGaming platforms and online sportsbooks is retained by the casinos’ third-party partners similar DraftKings and FanDuel.

Higher overhead, a final result of the US experiencing record book rising prices shoemaker's last year, also greatly wedged profits as expenses outpaced the stronger sack revenue.

You hold revenue that’s non growing immobile enough, and duo that with expenses inwards some categories that are upwardly 25% or more, and you tin can assure how speedily this can buoy fret profits,” Resorts Casino President St. Mark Giannantonio told the Associated Press.

The final iii months of 2022 were especially poor as profits tumbled nearly 32% to $119.3 million.

Smoking Debate Impact

The 2022 benefit reports for the Atlantic Ocean City cassino manufacture won’t get along any favors for the grassroots coalition that’s seeking to wipe out indoor tobacco smoking from the gaming properties. The industry has been strongly opposed to those efforts and has argued that a full smoking forbidding would put Atlantic Ocean City at a free-enterprise(a) disfavour with casinos inward nearby City of Brotherly Love where indoor cassino smoking also remains permitted.

The Casino Association of New Jersey, which Giannantonio heads, projects that one-year land-based gaming would declination by as practically as 25% in the firstly yr followers a smoking ban. That would lead story to 2,500 job losses, the industry claims.

Smoking opponents might heel counter that despite casino profits dropping almost 5% in conclusion year, all but i — Bally’s — was noneffervescent profitable. Bally’s is undergoing a considerable refurbishment that continues to preserve expenses far higher than revenue.

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